Good Growth, Conservative Outlook at Ruckus Wireless

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You know expectations are high when a stock rallies 21 percent headed into earnings. That's exactly what Ruckus Wireless
RKUS
did from Friday to Tuesday ahead of its earnings report after the close Tuesday. It's usually not enough for a high-multiple stock to beat earnings and sales targets. The outlook has to be rock solid as well and that's where Ruckus came up a bit short. Quarterly profit was flat from a year ago at $0.07 a share, above the consensus estimate of $0.05. Sales came in a little better than expected, rising 51 percent to $62.2 million. Analysts were looking for $60.5 million. Ruckus said it expects first quarter earnings of $0.03 to $0.04 a share on revenue of $62 billion to $64 billion. The current consensus earnings estimate is $0.03 a share on revenue of $62.6 million. As a provider of Wi-Fi solutions to service providers and enterprises, Ruckus is well positioned for growth. Market research firm Infonetics expects the service provider Wi-Fi market to grow from approximately $300 million in 2011 to $2.8 billion by 2016. The company went public in November at $17 and has been an outstanding performer since its debut. It has a market capitalization of $1.9 billion. Ruckus' product offerings continue to see strong demand and growth prospects look good which is why it sells at a premium valuation. It was a decent quarter but conservative guidance spooked investors. Shares fell nearly 13 percent to 22.56 in pre-market trading.
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Posted In: EarningsNewsMoversTech
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